ERC Updates
November 23, 2022This article addresses a few of the issues that restaurants face regarding the refund processing, IRS examinations of credits and tax liabilities, including potential underpayment penalties due on the refunds.
Sales Tax Savings Opportunity for Restaurant Companies with Locations in Colorado
July 18, 2022Colorado has recently renewed a limited time sales tax deduction for restaurants and other similar “qualifying retailers,” which allows eligible retailers to retain and use a portion of their collected state sales tax (equal to the lesser of state net taxable sales or $70,000 for each month in the specified sales tax period).
The Case for Diverse Revenue Streams
May 26, 2022A patron speaks with the restaurant host, either to confirm a reservation or ask if there’s a table available. Ideally, the host calls upon a server who then leads the patron to a table and takes their order. It’s a system that worked since the dawn of the U.S. restaurant industry — accounting for 90% of most restaurants’ revenue pre-pandemic — until it didn’t.
From Automat to Automatic: How New Tech is Bringing Efficiencies to Back of House
April 22, 2022From the drive through speaker to the QR code menu, restaurant patrons are familiar with the evolution of technology that streamlines front of house operations. Recent years have seen increased focus on innovation at the back of house. Though they might not be visible to the average customer, changes underway will have a profound impact on customer experience.
Do You Believe in Ghost Kitchens?
March 22, 2022Between operational disruptions, government restrictions, labor shortages and other challenges, restaurants have been one of the hardest-hit industries during the COVID-19 pandemic.
Supply Chain Disruptions Weighing on Restaurants’ Food And Product Inventory
February 23, 2022The food and hospitality industry continues to be an important economic driver for the US economy, comprising about 9.5% of GDP. Supply chain disruptions are weighing on restaurants’ ability to stock their shelves with inventory.
Are Gift Cards Really a “Gift” for the Restaurant Industry?
January 13, 2022Given the popularity of gift cards among both issuers and recipients, restauranteurs should understand the pros and cons of selling and issuing gift cards.
DOL Final Tip Regulations May Require Employers to Pay Full Federal Minimum Wage to Tipped Employees
December 16, 2021The Department of Labor’s final tip rule is scheduled to take effect on December 28, 2021. As drafted, the final rule will limit the amount of time tipped employees can spend performing non-tip-producing work while still receiving cash wages as low as $2.13 per hour.
Repayment of Deferred Employer Social Security Taxes
December 6, 2021The past 18 months have ushered in immense hardship in the restaurant industry as the nation and the world try to find a new normal in the midst of the COVID-19 pandemic. Historic supply chain disruptions, labor shortages and now inflation are complicating recovery even further.
Employee Retention Credit to End September 30, 2021 Instead of At Year End
November 11, 2021As stated in past blog posts, one of the most beneficial COVID-19 tax relief measures for the restaurant industry is the employee retention credit (ERC).
Restaurant Technology Series Part 1: The Restaurant of the Future
September 29, 2021More than a year ago, no one could have predicted the unprecedented challenges faced by so many restaurants around the world due to a major global pandemic. Customer demand for convenience and flawless digital experiences are on the rise and further fueled by the pandemic.
Heads Up, Restaurants: Federal Relief Could Trigger a Single Audit
August 25, 2021Since the outbreak of COVID-19, the restaurants industry has been one of the hardest hit by the pandemic’s impacts, leading to spikes in business closures, continued capacity limitations, and unprecedented loss in both jobs and sales.
Safe Harbor Permits PPP and Other Exclusions from Gross Receipts Used to Determine Employee Retention Credit Eligibility
August 13, 2021BDO’s team of experts can help you compute and maximize your ERC.
Victory for Restaurants: IRS Permits Tips to be Treated as Qualifying Wages for the Employee Retention Credit
August 10, 2021By now, most restaurant operators are familiar with the Employee Retention Credit (ERC) . As we discussed in a previous blog post, the ERC is a fully refundable payroll tax credit designed to encourage businesses to retain and compensate employees during periods in which businesses are not fully operational.
BDO Knows SPACs
June 1, 2021Restaurants, like other industries, have watched the increase in the creation of Special Purpose Acquisition Companies or SPACs within the marketplace. To date, there have been more SPACs created in 2021 then there were in all of 2020
New Restaurant Grant FAQ & Application How-To Guide
April 30, 2021The National Restaurant Association has posted additional resources for owners completing grant applications for the Restaurant Revitalization Fund (RRF). Check out the NRA’s updated FAQs and their new step-by step guide to completing the RRF grant application.
About the Restaurant Practice
BDO is one of very few CPA firms in the U.S. with a robust and dedicated Restaurant Practice. Our professionals serve hundreds of clients across the country, including franchisors, franchisees, public companies, and independents. We also serve all segments – quick service (QSR), fast casual, casual dining, pizza, fine dining, and emerging chains. From menu engineering to capital structure, our professionals draw on extensive knowledge of best practices in order to help our clients drive profitability and growth. In addition to a full array of tax and assurance services, we also provide a wide range of advisory services, including internal control reviews, benchmarking studies, and repairs and maintenance studies.
